The RBNZ Rate Decision is scheduled for Wednesday and they are expected to follow the RBA and Federal Reserve, hitting the rate rise ‘pause button’. Inflation has been tumbling lower across Europe, but remains stubbornly high in Germany, while Core inflation has been persistent in the USA. NZ Inflation has been very high and cost of living pressures must add to pressure on the RBNZ to tame inflation. Raising rates hits the consumer hard, through mortgage rates, so therein lies the problem. The RBNZ is ‘caught between a rock and a hard place’. The NZD is trading around 0.6200 in the lead up to the RBNZ decision.
Current Level: 0.6318
Last Weeks Range: 0.6285-0.6319